Deck 11: Compensation Management

Question 1

_____-year-olds can work only up to 40 hours in a non-school work week.

A)Twelve
B)Fourteen
C)Sixteen
D)Seventeen
E)Eighteen

Answer 1

B

Question 2

Who would typically not qualify as an exempt employee?

A)Professionals
B)Executives
C)Highly compensated employees
D)Inside sales
E)Outside sales

Answer 2

D

Question 3

Which of the following is a type of incentive compensation?

A)Base pay
B)Benefits
C)Wage compression
D)Skill-based pay
E)Broadbanding

Answer 3

D

Question 4

If the company moves to a state that has a higher minimum wage than the federal minimum wage,what is the minimum wage it must pay?

A)$5.15
B)$6.00
C)$7.25
D)The state minimum wage
E)At least 110% of the federal minimum

Question 5

If a person works more than 60 hours a week,according to federal law what should that person be paid for the hours above a standard 40-hour week?

A)Straight pay
B)Time and a half
C)Time and a half for hours above 40 and double time for all hours above 60
D)Double time
E)Triple time for all hours above 60 hours worked

Question 6

Which of the following is a current federal law?

A)Paycheck Fairness Act
B)Fair Pay Act
C)Comparable Worth Act
D)Back to Basics Act
E)Equal Pay Act

Question 7

Which type of equity is associated with pay surveys?

A)Internal
B)External
C)Comparison
D)Employee
E)Strategic

Question 8

What type of compensation would be paid on an hourly basis?

A)Salary
B)Bonuses
C)Wages
D)Benefits
E)Stock options

Question 9

What restrictions do 16- and 17-year-olds have concerning work?

A)They must work in nonhazardous occupations.
B)They must not work more than 30 hours per week during school time.
C)They must have a parent's permission to work at night.
D)They must work under direct supervision at all times
E)They must not work overtime.

Question 10

Green circle jobs:

A)are paid at the midpoint for a particular class of jobs.
B)are paid above a particular class of jobs.
C)are paid below a particular class of jobs.
D)are not counted in the pay structure.
E)are benchmark jobs in the overall pay structure.

Question 11

What determines the worth of one position relative to other positions within an organization?

A)Job specifications
B)Job analysis
C)Job design
D)Job descriptions
E)Job evaluation

Question 12

_____________ = expectancy x instrumentality x valence.

A)Motivation
B)Productivity
C)Value
D)Assurance
E)Viability

Question 13

According to expectancy theory,what is the perception of the likelihood of a particular level of performance providing the individual with the desired reward?

A)Instrumentality
B)Expectancy
C)Valence
D)Path-goal
E)Deliberation

Question 14

What is the law that governs federal minimum wage and overtime rules?

A)Social Security Act
B)Equal Employment Opportunity Act
C)Fair Labor Standards Act
D)Maximum Hour and Wage Act
E)Federal Minimum Wage Act

Question 15

Where would minors,14 to 15 years old,typically be allowed to work?

A)Most food service jobs
B)Meat packing plants
C)Construction sites
D)Transportation
E)Road crews

Question 16

What is the maximum number of hours that 14 and 15-year olds can work during a school week?

A)12 hours
B)5 hours
C)40 hours
D)10 hours
E)18 hours

Question 17

What sets the top of a particular pay level?

A)Product market competition
B)Labor market competition
C)Product labor competition
D)Spillover effect
E)Optimization function

Question 18

Which job evaluation method begins by comparing benchmark jobs and then uses both point factors and ranking?

A)Job classification
B)Decision banding
C)Job elements
D)Factor comparison
E)Hay Guide

Question 19

What is the current trend for pay for performance?

A)It is declining in popularity.
B)It is rising in popularity.
C)It is rising in manufacturing but falling in services companies.
D)It is staying about the same in popularity.
E)It is uncertain about its status.

Question 20

Which of the following is a form of indirect compensation?

A)Base pay
B)Incentive pay
C)Add-ons
D)Benefits
E)Commission

Question 21

_____ is a concept that when jobs are distinctly different but entail similar levels of ability,responsibility,skills,and working conditions,they are of equal value and should have the same pay scale.

A)Equal worth
B)Comparable worth
C)Equitable value
D)Differential value
E)Comparable value

Question 22

All of the following are factors that fit into an organizational philosophy on pay except one.Which one is the exception?

A)Pay for performance or longevity.
B)At/above/below the market
C)Skill or competency pay
D)Pay to attract younger or older employees
E)Pay secrecy

Question 23

_____ proposes that people compare their outcomes such as pay in terms of their inputs with relevant others in order to judge fairness.

A)Pay theory
B)Equity theory
C)Equivalent justice theory
D)Expectancy theory
E)Review and compare theory

Question 24

_______ makes managing pay structures easier and gives managers greater ability to adjust individual pay based on performance through the process of combining multiple pay levels into one.

A)outsourcing
B)delayering
C)pay reengineering
D)broadbanding
E)A market pay line

Question 25

_____ help to determine the relative worth of each position within the organization.

A)Point analysis
B)Job structures
C)Job evaluations
D)Job reviews
E)Broadbands

Question 26

Equity theory says that if people conclude that they are under-rewarded,they might decide to make things fairer by doing all of the following EXCEPT:

A)asking for a raise.
B)doing less work.
C)lowering their outcomes.
D)taking a better job.
E)theft or sabotage.

Question 27

_____ sets the bottom of a particular pay level within a pay structure.

A)Performance appraisal
B)Skill based pay
C)Product market competition
D)Labor market competition
E)Base level pay

Question 28

_____ theory notes that if a company pays higher wages,it can generally hire better people who will in turn be more productive.

A)Tournament
B)Signaling pay
C)Efficiency wage
D)Operational wage
E)Equity

Question 29

A prominent number found in the Fair Labor Standards Act related to highly compensated employees is __________.

A)$100,000
B)150% of normal wages
C)$50,000
D)48 hours
E)2,080 hours per year

Question 30

Felicia has been working to find out what types of rewards each of her subordinates desires most in order to provide reward that they value for their work.Felicia is concerned with which of the following factors?

A)Benchmarking
B)Instrumentality
C)Expectancy
D)Valence
E)Pay levels

Question 31

A market pay line:

A)is developed in order to price each compensable factor.
B)shows average pay at different pay levels within a particular industry.
C)can be calculated by using the government's O*NET website.
D)can tell us the exact level of pay that should be offered to a recruit.
E)is based on all benchmark companies in a given industry.

Question 32

Which theory says that employee motivation will remain high when employees believe that a particular level of effort on their part will lead to a desired level of performance,and that level of performance leads to an outcome that they want?

A)Expectancy theory
B)Learning theory
C)Efficiency wage theory
D)Operant conditioning theory
E)Equity theory

Question 33

Why would an organization choose to pay for longevity instead of performance?

A)They want an older workforce because older workers can mentor the younger employees
B)Older workers are nearly always much more productive than younger workers
C)Customers may have strong relationships with employees that they have dealt with for most of their lives.
D)People with greater organizational tenure know,and could tell others about,all of the skeletons in the corporate closet
E)Younger workers are just not as dedicated as workers with longer tenure in the company.

Question 34

The ____ method of job evaluation involves "stacking" jobs from lowest to highest in order of value to the company.

A)Point factor
B)Factor evaluation
C)Job classification
D)Factor comparison
E)Ranking

Question 35

The FLSA includes information on each of the following EXCEPT:

A)Minimum wage.
B)Exempt employees.
C)Overtime.
D)Benefits.
E)Child labor.

Question 36

Getting rid of some of the vertical hierarchy (reporting levels) in an organization is called:

A)Broadbanding
B)Delayering
C)Downsizing
D)Reinforcing
E)Reengineering

Question 37

Xavier believes that he is one of the hardest working people in the department,but is being paid less than almost all of his peers.Xavier is most likely to do which of the following?

A)Decide that he doesn't work very hard after all.
B)Ask his manager for more difficult work to show he is good at his job.
C)Increase his levels of effort in his current work.
D)Assist other employees in getting their work done to show persistence.
E)Leave for another job.

Question 38

Overlapping _____ allows flexibility in assigning each person's pay rate within a particular pay level.

A)pay levels
B)pay lines
C)job evaluations
D)compensable factors
E)benchmark jobs

Question 39

Compensable factors:

A)are the determining factor in individual pay rates.
B)provide information on psychological success in a particular job.
C)provide information on physical success in a particular job.
D)would include factors such as essential functions in a job.
E)are usually identified by interviewing the individual job-holder.

Question 40

_____ occurs when the gap between pay for newcomers and veteran employees narrows because of changing economic conditions over time.

A)Pay depression
B)Wage compression
C)Leveling
D)Econometric distribution
E)Equalization

Question 41

Sometimes,_____________ is used as a justification for unethical behavior.

A)discrimination
B)expectancy
C)negotiation
D)perceived inequity

Question 42

To remain competitive,we will most likely have to________ match the benefits provided by our main competitors.

A)approximately
B)partly
C)doubly
D)half

Question 43

The best reason to pay above market is:

A)to attract better workers and enhance our employment brand
B)to take advantage of tax incentives
C)to keep the unemployment rates down
D)to invest in workforce development opportunities

Question 44

_____________ is part of expectancy theory.

A)Goal-setting
B)Decision-making
C)Negotiation
D)Grievance

Question 45

Overtime is currently set by the FLSA as _____________.

A)double time
B)time and a half
C)half time
D)a $100 bonus per paycheck

Question 46

Legal requirements for benefits have to be dealt with "off the top"-they have to be _____________ the available funds.

A)added to
B)divided by
C)subtracted from
D)kept separate from

Question 47

____________________ break a job down into components then apply points to each of the factors based on that factor's difficulty.

A)FLSA requirements
B)Performance evaluations
C)Point-factor methods
D)Undercompensated employees

Question 48

If employers misclassify employees under the FLSA:

A)they can justify it by simply showing that there was a BFOQ for the job.
B)they may be personally criminally prosecuted and can be fined up to $10,000 per infraction.
C)the organization can be held liable and have to pay a fine of up to $11,000 per infraction.
D)they can be personally prosecuted up to a maximum fine of $500,000.
E)they can justify it by showing both a business necessity and a BFOQ.

Question 49

The first major provision of the FLSA concerns ____________________.

A)underage employees
B)the unskilled workforce
C)new hires
D)the federal minimum wage

Question 50

If we pay our employees for knowledge,skills,and abilities they may never use in the workplace,our overall compensation cost ____________.

A)does not change
B)changes insignificantly
C)goes down
D)goes up

Question 51

Sweet Sal's drive-thru eatery pays just above minimum wage,but other restaurants pay their workers more.Sweet Sal's is paying ___________.

A)minimum wage
B)at market
C)above market
D)below market

Question 52

Mad Max retail store hires workers for $8.50 per hour,which is the same hourly rate as other nearby retail stores.Mad Max is paying _________.

A)minimum wage
B)at market
C)above market
D)below market

Question 53

Trendy Tina's tech shop pays higher wages than any other electronics store in town.Trendy Tina's is paying ________

A)minimum wage
B)at market
C)above market
D)below market

Question 54

If you find a red circle rate in a particular pay level,you should probably:

A)not allow the person to get any new raises because they are already being paid too much.
B)recheck your figures because you have a miscalculation in your salary computations.
C)move the person up to at least the bottom of the pay level for their job.
D)broadband the pay scale to put them in the boundary for that job.
E)promote the individual because it is obvious that they work harder than others in their department.

Question 55

________________ includes overtime pay,shift differential,or premium pay for working weekends and holidays.

A)Wage or salary add-on pay
B)Base pay
C)A benefit package
D)Incentive pay

Question 56

Penalties for misclassifying employees include:

A)criminal prosecution and monetary fines per infraction
B)automatic jail sentence
C)revocation of business license for one year
D)only monetary fines

Question 57

______________ is a flat rate,either hourly wage or salary.

A)Incentive pay
B)Base pay
C)Add-on pay
D)A benefit package

Question 58

Base pay and any add-ons,and incentive pay are known as _______________.

A)funded pay
B)salary exclusions
C)direct compensation
D)indirect compensation

Question 59

The job ranking method simply ranks jobs ___________________.

A)based on education attainment
B)from most- to least-desirable
C)from lowest to highest
D)based on number of job openings

Question 60

The internal inputs into creating a pay structure include all of the following except:

A)job evaluations.
B)pay policies.
C)job analysis.
D)job structure.
E)pay surveys.

Question 61

Halle plans to pay her workers the lowest hourly rate of pay generally allowed under the Fair Labor Standards Act.In other words,Halle will pay her workers _________.

A)skill-based pay
B)overtime wages
C)at-the-market wages
D)minimum wage

Question 62

Kyle is exhausted from working overtime to get his projects done.His manager asked another employee to help Kyle with his work so that Kyle can work regular hours with no overtime.According to learning theory,this is __________.

A)positive reinforcement
B)negative reinforcement
C)punishment
D)avoidance reinforcement.

Question 63

Casey's compensation includes health and dental insurance.These parts of her compensation is considered ________.

A)base pay
B)a wage and salary add-on
C)incentive pay
D)benefits

Question 64

In setting the base pay rate for new jobs at her organization,Alexis is doing an assessment of how much she can afford to pay.She is working on the ________ portion of her organizational philosophy on compensation.

A)ability to pay
B)types of compensation
C)pay for performance or longevity
D)skill or competency-based pay

Question 65

Conner has received steady pay increases over the years for his solid sales performance.This year,the organization merged with another organization and money has become tight.Conner doubts there's any money available for raises.Therefore,he has not been motivated to work as hard.According to expectancy theory,Conner is unmotivated because _________ is lacking.

A)valence
B)instrumentality
C)expectancy
D)significance

Question 66

Martha was promised a 10 percent raise if she wins a contract with the city government.Martha could use the money to pay off some debts.However,she happens to know that another company already has informally won the contract.There is a very slim chance that she could win the contract away from the other organization,but she does not believe she can do it.According to expectancy theory,Martha is unmotivated to try to win the contract because she lacks __________.

A)valence
B)instrumentality
C)expectancy
D)significance

Question 67

Colton's salary is $40,000 per year.This part of his compensation is considered ________.

A)base pay
B)wage and salary add-on
C)incentive pay
D)benefits

Question 68

Jacob's manager asks him to organize a blood drive for the organization.The manager tells Jacob that if he accepts the assignment,he will be awarded Employee of the Month.Jacob has organized blood drives in the past and knows how much work is involved.He does not doubt that his manager can deliver on the promise of the award.However,Jacob has always thought that the award was silly.According to expectancy theory,Jacob is unmotivated to accept the assignment because _________ is lacking.

A)valence
B)instrumentality
C)expectancy
D)significance

Question 69

Mimi is redesigning the compensation mix at her organization to include more family-friendly benefits such as child and elder care.Mimi is working on the ________ portion of her organizational philosophy on compensation.

A)ability to pay
B)types of compensation
C)wage compression
D)skill or competency-based pay

Question 70

Morgan is working on the compensation package for bank tellers.Bank customers like to see the same faces in the bank when they come in to talk about their money.Therefore,Morgan needs to find a way to reduce turnover among the tellers.Adopting a(n) _________ organizational philosophy on compensation might be a good idea.

A)below-the-market
B)at-the-market
C)pay for longevity
D)wage compression

Question 71

Krista's organization uses a differentiation strategy.To encourage worker to bring knowledge,skills,and abilities to the job that can allow them to analyze problems and come up with creative solutions,Krista might adopt a(n)________ organizational philosophy on compensation.

A)pay secrecy
B)above-the-market
C)at-the-market
D)competency-based pay

Question 72

If Brittany reaches her sales goals for this quarter,she will receive a $2,000 bonus.This part of her compensation is considered ________.

A)base pay
B)a wage and salary add-on
C)incentive pay
D)benefits

Question 73

Aryn and Mary started at the organization on the same day.Both are hard workers and perceive that they are equitably rewarded for their efforts.According to equity theory,it is likely that both will ________.

A)request a raise
B)worker harder or longer
C)do less work
D)continue to put forth effort

Question 74

Mallory would like to attract better workers and enhance her organization's employment brand.Adopting a(n) ________ organizational philosophy on compensation could help her achieve her goals.

A)at-the-market
B)above-the-market
C)pay for longevity
D)pay secrecy

Question 75

Julianna is paid $60,000 a year as a computer programmer.She gets paid regardless of how many hours she works.Julianna's pay is considered _________.

A)benefits
B)wages
C)salary
D)incentives

Question 76

Andrew earns $12 per hour during regular shifts.However,when he has to work the night shift,his pay goes up to $14 per hour.This part of his compensation is considered ________.

A)base pay
B)a wage and salary add-on
C)incentive pay
D)benefits

Question 77

Jackson is paid $11 an hour as a cafeteria attendant.Jackson's pay is considered _________.

A)benefits
B)wages
C)salary
D)incentives

Question 78

Alexis did not meet her deadline.As a result,she was demoted back to her previous position.According to learning theory,this is __________.

A)positive reinforcement
B)negative reinforcement
C)punishment
D)avoidance reinforcement.

Question 79

Katrina's organization is hiring for low-skilled jobs in an industry where unemployment is high and it is easy to find replacement workers.Adopting a(n) ________ organizational philosophy on compensation could allow her to hire plenty of workers.

A)wage compression
B)below-the-market
C)pay for longevity
D)competency-based pay

Question 80

Courtney's organization is in a very competitive industry and getting goods to market quickly is vital to the organization's survival.For Courtney,adopting a(n) _________ organizational philosophy on compensation might be a good idea.

A)at-the-market
B)below-the-market
C)pay for performance
D)wage compression